Equinor and EDF Renewables/ESB have been selected as preferred bidders in the UK Celtic Sea lease round, securing development sites for 1.5 GW floating projects each. The round originally offered a total of 4.5 GW, split between three sites, referred to as PDAs (Project Development Area).
Results for the Celtic Sea Lease Round, also referred to as Lease Round 5, have been published by the Crown Estate, awarding Equinor and the joint venture Gwynt Glas (EDF Renewables UK/ ESB) a 1.5 GW each.
The round offered a total of three PDAs to developers, each 1.5 GW. The Crown Estate will review the options for the third and last site, seeking solutions to optimize the full potential of the 4.5 GW development area.
The Celtic Sea Round 5 is the first time new lease areas have been awarded in the UK since the 2023 INTOG lease rounds, testing the developer’s interest in new offshore wind projects in the country. Despite only two of three sites being awarded, the round should be seen as a success. With the current market conditions, developers are holding back on bidding on new sites, steering towards safe markets with a guaranteed offtake agreement. The Celtic Sea projects are likely to be built out in phases, with initial smaller scale projects in the 250-500 MW range first, with additional expansions expanding at a later date. The ventures should, at the moment, should be viewed as long-term opportunities, with first power potentially towards the mid 2030ies.
Image Credit: Equinor
